Early-stage VC firm a99 to launch $100 million fund to support manufacturing and infra startups

Early-stage venture capital firm a99 (formerly Artha99) is preparing to raise its third fund, setting a target corpus of $100 million (about Rs 850–885 crore). 

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The Chennai-based firm plans to deploy this capital across 12 to 15 startups in the manufacturing and infrastructure sectors, writing cheques between $5 million and $10 million.

The fund will focus on companies at the Pre-Series A to Series B stages, founder and managing partner Vignesh Shankar said. a99 has already received soft commitments worth $30 million from a mix of existing and new limited partners and is aiming for a first close by April 2026. Unlike its previous vehicle, the new fund will not carry a greenshoe option.

Founded in 2021, a99 has positioned itself as a specialist investor in India’s industrial backbone, backing technologies and enterprises driving the country’s manufacturing resurgence. Shankar describes the firm’s mission as identifying and supporting “visionary founders building the backbone of India’s growth story, factories, supply chains, infrastructure and industrial technologies.”

The firm’s second fund, launched in 2022 with an initial target of Rs 50 crore, expanded to Rs 105 crore after exercising a greenshoe option. That vehicle has invested in companies such as Aditya Avartan, Intangles, Innocule, EzeRx, Lyzr.ai and Raptee.

From its first fund, a99 backed Vajro, Intents Mobi and Sarva, and it notched one notable exit when Futurice UK, a subsidiary of Finland’s Futurice, acquired its stake, delivering 7X returns.

The new fundraising effort comes against the backdrop of a shifting industrial landscape in India. The government’s “Make in India” program, backed by production-linked incentives and state-level subsidies, has encouraged multinational manufacturers to expand operations in the country.

India now produces more than 325 million mobile phones annually, making it the second-largest manufacturer globally, with Apple and Samsung among the most prominent contributors. Reports suggest Apple is planning to ramp up iPhone 17 production across its five Indian factories.